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The main challenge faced by NBFCs is the fact that, they do not collect customer deposits. Customer deposits is the main source of cash for banks and that is why in spite of heavy losses, banks are able to survive whereas NBFCs had to wind up their operations.

Mobilizing funds for their operations is the biggest challenge for Non Banking Financial Companies.

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Q: What are the challenges of non banking financial institutions?
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What are objective of non banking financial institutions?

Non banking institutions offer different services. These services will range from check cashing to making a payment on a bill.


What is the meaning of Banking and non banking institutions?

A banking institution is required to have a full banking license and is supervised by a banking regulatory agency. Non-banking is a financial institution that does not have these requirements.


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The main difference between financial and non financial institutions is in their functions. Financial institutions will accepts deposits and offer financial services like loans and so on while non-financial institutions do not engage in financial activities.


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